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The U.S. dollar settled at the end of last week’s trading session and traded below a 14-year low, as investors ignored mostly upbeat U.S. economic data ahead of Christmas. Technically, the Greenback could rise once again around the beginning of 2017.

The U.S. dollar index settled below 103 pips and could trade in a limited range during the week.

Gold rose slightly as the dollar fell to a 14-year low. The yellow metal settled at $1,135 and could trade between $1,130 and $1,140.

The Greenback pared its gains vs. JPY as Haruhiko Kuroda, Governor of the Bank of Japan, said on Monday that the global economy seems to be entering a new phase and is finally putting behind the negative legacy of the global financial crisis. Kuroda also said that the BOJ's new policy framework aimed at keeping long-term interest rates around zero percent would help maximize the benefits of global tailwinds for Japan's economy.

The Sterling pound settled yesterday, despite the release of data showing that the UK economy grew by 0.6% in the third quarter, which had originally been estimated at 0.5%. GBP traded below $1.23, despite the fact that the UK economy is looking even stronger, following the referendum, than was previously estimated.

Oil prices settled above a 17-month high ahead of the Christmas and New Year holidays. On the other hand, the markets are anticipating how OPEC will manage its planned output cuts.

DisclaimerThe prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.

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